Binance, the crypto exchange world’s largest, called the attention of their users who were using CoinJoin. CoinJoin is a privacy tool that allows you to add anonymity to transactions. To achieve this, a group of transactions of Bitcoin, and “mix” outputs of transactions are not used (UTXO). So you can hide who sent what to what direction to increase the privacy of all users. However, Binance considered that using this tool was something objectionable to their users. But the real controversy began when the exchange froze for a withdrawal of Bitcoin (BTC). The news was unveiled when the Twitter user, Catxolotl, published that the exchange house had frozen withdrawals. The images showed what appeared to be a message of Binance Singapore, where they assured that they had started an “investigation” about the withdrawal of an unknown amount of BTC.
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Binance against CoinJoin
According to the tweet of Catxolotl, one of the main reasons that froze his funds was because they found relationship with the portfolio Wasabi.
Bitcoiners be warned: this is what happens if @BinanceSGD finds you withdrawing to @wasabiwalletNot surprised that my transactions are tracked, it’s KYC after allBut I’m very concerned that Binance knew I was sending to wasabi, when all I input was to bc1 address, nothing more pic.twitter.com/T6ePjahESY— Catxolotl (@bittlecat) December 19, 2019
“Warning Bitcoiners: this is what happens when @BinanceSGD found you by removing the @wasabiwallet. I’m not surprised to track my transactions, after all, is KYC. But I am very concerned that Binance knew that I was sending to Wasabi, when all I entered was an address bc1, nothing more.” For its part, the team of Binance confirmed the assumptions of the Twitter user. In fact, the reason why that it entered into a research was because I was using CoinJoin through the wallet Wasabi. A representative of Binance was commissioned to confirm the story: “Binance SG operates under the requirements set out by MAS and our partner regulated by MAS, Xfers. Therefore, there are controls AML CFT established to Binance SG. Unfortunately, this user has activated one of our mechanisms of control of risks and, therefore, we are conducting a more in-depth research”. According to the exchange, the regulations cryptographic in Singapore made tools like CoinJoin are considered as “slightly desirable”.
Recovered funds
On December 20, Catxolotl confirmed that had their Bitcoins back. He did, however, a criticism of Binance by the methods that he used to know what they were doing or left to make their users with a reference to the famous book “1984”. “Update: I got back my sats, but not without a promise to the Big Brother that there would shuffle those utxos. I hope that you all have taken something from this.” The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.
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